Gold Futures: Further downside appears not favoured

Open interest in gold futures markets shrank for the 5^th consecutive session on Friday, this time by around 2.2K contracts according to preliminary results from CME Group. Volume followed suit and went down by around 30.6K contracts, reaching the third daily drop in a row.

Gold faces interim support around $1,710

Gold prices dropped for the third straight session at the end of last week. The downtick was on the back of diminishing open interest and volume and hints at the idea that extra weakness looks not favoured in the very near term. Next on the downside comes the 100-day SMA, today at $1,712 per ounce troy.